Abstract : The relationship between economics and security is a phenomenon which has been in existence for a long time but recent events have highlighted the significance of this linkage. The break up of the Soviet Union and remarkable economic growth in Asia-Pacific countries are two contrasting events which have not only changed the course of history but the balance of this equation. This paper examines the concept that economics and security are linked together in a special competing relationship with differing priority assigned to either of these by various countries according to their circumstances. It hypothesizes that after the end of the cold war economics has taken primacy over the security matters making it a primary element of national power. It analyses the situation currently prevailing in South Asia and examines the similarities between ASEAN countries and this region to formulate some recommendations for this region.